What Is Polygon Matic: An Explainer – NewsBTC

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Polygon (MATIC) is one of Ethereum’s premier scaling solutions. This article addresses critical questions such as “What is Polygon?”, “What is Polygon crypto?” and the specifics of “What is MATIC crypto?”. We look at Polygon’s unique blockchain architecture and its role in the evolution of the Ethereum blockchain.
In addition, we take an in-depth look at MATIC, the blockchains’ native token, and its transformation into Polygon 2.0. Last but not least, we also examine key partnerships and try to make a MATIC price prediction.
Polygon, birthed as the Matic Network in 2017, stands as a revolutionary “Layer 2” scaling solution for Ethereum’s blockchain. It’s designed to provide a faster, more efficient parallel to Ethereum’s main blockchain, addressing critical issues like high gas fees and network congestion.
MATIC, the network’s native cryptocurrency, is pivotal for network operations, serving multiple functions including transaction fees, staking, and governance decisions. The rebranding to Polygon in early 2021 marked a significant evolution, broadening its scope from just a scaling solution to a multi-layered ecosystem.
Polygon operates akin to an express lane, paralleling Ethereum’s main blockchain. It’s a complex system utilizing a variety of technologies to establish this high-speed blockchain. By “bridging” assets onto the layer-2, users can interact with popular crypto applications with greater speed and lower costs compared to Ethereum’s mainnet. The network’s construction is particularly ingenious, featuring:
At its core, Polygon is not just about enhancing transaction speeds but about creating an interconnected ecosystem of Layer 2 sidechains, which it ambitiously names the “Internet of Ethereum Blockchains.” This ecosystem is realized through:
Scalability Solutions: Technologies like Plasma, zkRollups, and Optimistic Rollups are employed, each tailored for different scalability requirements. Plasma focuses on off-chain transaction processing, while zkRollups and Optimistic Rollups offer solutions for bundling numerous transactions into single Ethereum blocks, thus enhancing throughput.
The networks approach is holistic, targeting not just individual transaction efficiency but a comprehensive upgrade to Ethereum’s network capabilities. It’s a bid to create a unified, interoperable blockchain environment, a leap forward in the blockchain and cryptocurrency landscape.
MATIC, the native cryptocurrency of Polygon, serves as the linchpin in the network’s functioning. Originating from Polygon’s earlier incarnation as the Matic Network, MATIC has evolved beyond a mere transactional currency. It’s utilized for paying transaction fees on the network, for staking, and significantly, in the governance of Polygon, granting MATIC holders a say in the network’s future developments.
MATIC’s Proof-of-Stake (PoS) consensus mechanism is central to its operation. Validators and delegators, who stake their MATIC, are crucial to the network’s security and integrity. They verify transactions, add them to the blockchain, and in return, earn MATIC rewards. This staking mechanism not only ensures network security but also incentivizes participation and investment in the ecosystem.
Polygon distinguishes itself in the crowded crypto space through its unique multi-layered architecture and a comprehensive suite of scaling solutions. Unlike many blockchain solutions that focus on a single aspect of performance enhancement, Polygon provides a modular framework. This framework allows developers to create Ethereum-compatible networks with varied features, including but not limited to:
Polygon’s vast array of partnerships across diverse industries highlights its significant impact and utility in the real world. These collaborations showcase how Polygon is integrating blockchain technology into various sectors, ranging from finance and social media to fashion and sports.
MATIC crypto, the native token of the network, is a fundamental component that fuels and stabilizes the Polygon ecosystem. It plays a multifaceted role, encapsulating both utility and governance aspects. As project evolves and expands its reach, the significance of MATIC continues to grow, underpinning the network’s operational efficacy and user engagement.
MATIC token, originally central to the Matic Network and now integral to Polygon, serves several key functions within the ecosystem. It is an ERC-20 token, compatible with the Ethereum blockchain, which facilitates seamless integration and interoperability. Key characteristics and uses of MATIC include:
MATIC’s role extends beyond its utility as a cryptocurrency. It is the cornerstone of the network, with its functions intricately woven into the network’s architecture:
Polygon 2.0 marks a transformative phase in the evolution of the network, aiming to scale Ethereum to the size of the internet using advanced Zero-Knowledge (ZK) technology.
Polygon, initially launched as Matic Network in 2017, was developed to address critical blockchain scaling and usability issues. In May 2020, the Matic Network debuted its mainnet on Ethereum. During this phase, the network was predominantly managed by the Matic Foundation, which gradually began to onboard third-party validators for decentralized control.
The network underwent a significant transformation in February 2021, rebranding to Polygon. This change marked an expansion of its capabilities, including the integration of ZK-rollup technologies and various other scalability solutions. Following this, the project continued its momentum by acquiring technologies like Hermez and Mir Protocol, and launching initiatives such as Polygon ID in June 2022 and Polygon Supernets in October 2022. The introduction of Polygon zkEVM in March 2023 further cemented its commitment to enhancing scalability and privacy.
Polygon 2.0, announced on June 12, 2023, represents a series of proposed upgrades aimed at unifying all Polygon protocols under the Zero-Knowledge (ZK) technology umbrella. This ambitious plan includes upgrading the PoS network to a zkEVM Validium network, which uniquely stores transaction data off-chain, maintained by the network’s validators.
The initiation of Polygon 2.0’s “Phase 0” on September 14, 2023, marked the beginning of implementing these upgrades. This phase was driven by the release of several critical Polygon Improvement Proposals (PIPs) that laid out the foundational changes for the network’s transformation. These proposals aimed to ensure that existing users and developers on the network would not be immediately affected, ensuring a smooth transition.
A cornerstone of the Polygon 2.0 upgrade is the transition from the existing MATIC token to the new POL token. This transition was officially set in motion with the POL token contract going live on the Goerli testnet on October 4, 2023. The POL token is designed to serve as the native token of the upgraded ecosystem, supporting a variety of roles across the ZK-based L2 chains.
The POL token starts with a supply of 10 billion, allowing for a one-to-one migration from MATIC, and features an annual emission rate of 2%. This emission is strategically planned to support validator staking rewards and contribute to a community treasury, emphasizing a balanced and sustainable network growth.
The price of MATIC, Polygon’s native cryptocurrency, is subject to fluctuations driven by various factors in the cryptocurrency market. The token’s value is influenced by general market trends, investor sentiment, network upgrades, and broader economic conditions.
Several key factors can impact the price of MATIC:
The 1-week chart of MATIC/USD depicts the most crucial levels in the medium to long term. For the analysis of these price levels, we use Fibonacci retracement levels and Exponential Moving Averages (EMAs) to identify potential support and resistance levels.
As of November 7, MATIC is trading around $0.7087, having recently conquered the 20-week EMA. The next critical level for MATIC to test is the 50-week EMA. If it successfully breaks and holds above this level, the next significant resistance would be at the 0.236 Fibonacci level of $0.92. These levels, coupled with market sentiment and fundamental developments within the ecosystem, will be pivotal in determining MATIC’s price trajectory in the coming weeks and months.
Polygon is a layer two blockchain scaling solution and framework to the Ethereum blockchain, enabling fast transactions with reduced costs.
“Polygon crypto” refers to the cryptocurrency ecosystem that is built on the network, including its native token, MATIC (soon to be POL), and the various decentralized applications (dApps) it supports.
“MATIC crypto” is the native utility token of the Polygon network, used for transaction fees, staking, and participating in network governance.
Polygon (MATIC) refers to the ecosystem and the suite of solutions provided by the Polygon network, which was initially known as the Matic Network before rebranding.
You can check the varying price of MATIC on any major cryptocurrency exchange or financial market data provider.
MATIC Polygon refers to the native token (MATIC) and the underlying network (Polygon) on which it operates.
The Polygon blockchain is a scalable network that provides a framework for building and connecting Ethereum-compatible blockchain networks.
The Polygon network is the overarching ecosystem that includes the Polygon blockchain, its native MATIC token, and all connected services and dApps.
With Polygon Matic, you can engage in a variety of blockchain-related activities such as trading, staking, governance, and interacting with dApps for gaming, finance, and other services.
Polygon Matic provides a platform for creating scalable and interconnected blockchain networks with lower transaction fees and faster speeds compared to Ethereum.
Polygon MATIC is continuously evolving, with upgrades like Polygon 2.0 aimed at expanding its capabilities and improving its infrastructure for better scalability and interoperability.
Users can employ the MATIC coin to pay transaction fees on the Polygon network, stake for network security, and participate in governance voting.
The MATIC network refers to the initial name of the Polygon network (rebranded in February 2021).
The MATIC token is the native cryptocurrency of the Polygon network, used to facilitate transactions, secure the network through staking, and enable community governance through voting.
The Polygon chain is a blockchain that operates in parallel to the Ethereum main chain. It aims to provide faster and cheaper transactions while still maintaining a high degree of security and interoperability with Ethereum.
Users utilize the Polygon coin, or MATIC, to pay transaction fees on the network, participate in the proof-of-stake consensus mechanism, and engage in governance through voting on network upgrades and proposals.
Polygon Web3 refers to the third generation of internet services for websites and applications built on the Polygon blockchain, focusing on decentralized protocols and providing a distributed environment for Web3 applications.
The worth of Polygon, in the context of market capitalization, is the total value of all the MATIC tokens in circulation. This value fluctuates based on the current market price of MATIC.
You can check the current price of MATIC, which varies, in real-time on various cryptocurrency exchanges or financial data platforms.
MATIC operates on the Polygon network, a layer two scaling solution built atop the Ethereum blockchain. This network aims to support scalable blockchain infrastructure and operates in tandem with Ethereum.
MATIC, a type of digital currency known as a cryptocurrency, serves as a utility token specifically designed for the Polygon network. Within its ecosystem, it facilitates transactions, staking, and governance.
Jake Simmons, a dedicated crypto journalist, has nurtured an unwavering passion for Bitcoin since 2016. Delving deep into the crypto world daily, he disseminates his profound insights and expertise to readers and the wider community. Jake is a firm believer in Bitcoin’s transformative power over the conventional fiat currency system. Holding a degree in Business Informatics, Jake has been entrenched in the blockchain and crypto professionally since his graduation in 2017. Engage with his latest takes on Twitter: @realJakeSimmons.
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